By: Cook, et al. (Senate SponsorArmbrister)H.B. No. 2107

(In the SenateReceived from the House April23,1999; April26,1999, read first time and referred to Committee on Finance; May6,1999, reported favorably, as amended, by the following vote: Yeas 8, Nays 0; May6,1999, sent to printer.)

COMMITTEE AMENDMENT NO. 1By: Lindsay

On page1, beginning on line45, amend HB 2107 by deleting Section 614.072(c)(1) and substituting the following:

(1)determine reasonable criteria and qualifications for the distribution of money from the rural volunteer fire department assistance fund, providing that no volunteer fire department may be denied assistance from the fund if it already receives funds from a political subdivision.

A BILL TO BE ENTITLED

AN ACT

relating to assistance to certain volunteer fire departments and to the imposition of a tax to finance that assistance.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION1. Chapter 614, Government Code, is amended by adding Subchapter F to read as follows:

SUBCHAPTERF.RURAL VOLUNTEER FIRE DEPARTMENT ASSISTANCE PROGRAM

Sec.614.071.DEFINITIONS. In this subchapter:

(1)"Director" means the director of the Texas Forest Service of The Texas A&M University System.

(2)"Fund" means the rural volunteer fire department assistance fund.

(3)"Program" means the Rural Volunteer Fire Department Assistance Program.

(4)"Service" means the Texas Forest Service of The Texas A&M University System.

(5)"Volunteer fire department" means a fire department operated by its members that is operated on a notforprofit basis, including a department that is exempt from federal income tax under Section 501(a), Internal Revenue Code of 1986, by being listed as an exempt organization in Section 501(c)(3) of that code.

Sec.614.072.ADMINISTRATION OF PROGRAM. (a) The Texas Forest Service shall administer the volunteer fire department assistance program established under this subchapter, and the director may adopt rules necessary to assist rural volunteer fire departments in paying for equipment and training of personnel.

(b)The service may employ staff to administer the program.

(c)The director shall, in consultation with the advisory committee:

(1)determine reasonable criteria and qualifications for the distribution of money from the rural volunteer fire department assistance fund; and

(2)establish a procedure for reporting and processing requests for money from the fund.

(d)The director shall prepare an annual written report on the activity, status, and effectiveness of the fund and shall submit the report to the lieutenant governor, the speaker of the house of representatives, and the comptroller before September 1 of each year.

(e)Any assistance or benefits provided under this subchapter to a volunteer fire department or a firefighter who is a member of a volunteer fire department may not be considered compensation, and a firefighter receiving assistance under this subchapter may not be considered to be in the paid service of any governing body.

(f)Administration costs associated with the program during a state fiscal year may not exceed seven percent of the total revenue collected from the tax imposed under Chapter 161, Tax Code, during the previous fiscal year.

Sec.614.073.ADVISORY COMMITTEE. (a) The director shall appoint an advisory committee to advise the director in regard to the administration of the program.

(b)The advisory committee consists of five members, two of whom must be members of the Texas Rural Fire Advisory Council, two of whom must be elected county officials, and one of whom must be an elected representative of a municipality with a population of 10,000 or less. The director must appoint the members as follows:

(1)one member from the north region of the state;

(2)one member from the south region of the state;

(3)one member from the east region of the state;

(4)one member from the west region of the state; and

(5)one member from the central region of the state.

Sec.614.074.REQUESTS FOR ASSISTANCE. (a) A request for assistance from the fund shall be submitted to the director.

(b)On receiving a request for assistance, the director shall determine whether to provide assistance and the amount of the assistance to be provided, if any, based on the criteria developed in consultation with the advisory committee under Section 614.072. A written copy of the decision shall be sent to the requestor and each member of the advisory committee.

Sec.614.075.FUND. (a) The rural volunteer fire department assistance fund is an account in the general revenue fund and is composed of money collected under Chapter 161, Tax Code, and contributions to the fund from any other source.

(b)Money in the fund may be used only for a purpose under this subchapter.

SECTION2. Subtitle E, Title 2, Tax Code, is amended by adding Chapter 161 to read as follows:

CHAPTER 161. FIREWORKS TAX

Sec.161.001.DEFINITION. In this chapter, "fireworks" means any composition or device that is designed to produce a visible or audible effect by combustion, explosion, deflagration, or detonation that is classified as Division 1.4G explosives by the United States Department of Transportation in 49 C.F.R. Part 173 as of September 1, 1999.

Sec.161.002.FIREWORKS SALES TAX. (a) A tax is imposed on each sale at retail of fireworks.

(b)The tax rate is two percent of the sale price of the fireworks.

(c)The tax imposed under this chapter is in addition to the tax imposed under Chapter 151. The tax imposed by this chapter does not apply to a sale unless the tax imposed under Chapter 151 applies to the sale.

Sec.161.003.APPLICATION OF OTHER PROVISIONS OF CODE. (a) Except as provided differently by this chapter:

(1)the tax imposed by this chapter is administered, imposed, collected, and enforced in the same manner as the tax under Chapter 151 is administered, imposed, collected, and enforced; and

(2)the provisions of Chapter 151 that are applicable to the sales tax imposed under Subchapter C, Chapter 151, apply to the tax imposed by this chapter.

(b)A change in the law relating to the taxation of the sale of fireworks under Chapter 151 also applies to the tax imposed by this chapter.

Sec.161.004.ALLOCATION OF TAX. The comptroller shall allocate the revenue from taxes imposed by this chapter, other than penalties and interest, to the rural volunteer fire department assistance fund established by Section 614.075, Government Code.

SECTION3. (a)If this Act receives the votes required by Section 39, Article III, Texas Constitution, for an effective date before the 91st day after the last day of the legislative session, this Act takes effect July 1, 1999.

(b)If this Act does not receive the votes required by Section 39, Article III, Texas Constitution, for an effective date before the 91st day after the last day of the legislative session, this Act takes effect October 1, 1999.

(c)The director of the Texas Forest Service may not grant a request for assistance under Subchapter F, Chapter 614, Government Code, as added by this Act, before September 1, 2000.

SECTION4. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended, and that this Act take effect and be in force according to its terms, and it is so enacted.

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